Graphics chip maker Nvidia has apparently been awarded a contract to provide its mobile-centric system-on-a-chip, Tegra, to a new Nintendo DS, which will be announced in late 2010.

Insiders tell IT news outlet BSN that a single chip Tegra will supposedly power the new DS; the Tegra was developed for use in mobile devices like Microsoft's Zune HD as well as smart phones.

If true, this could explain why Nvidia CEO Jen-Hsun Huang declared that the Tegra account will account for half of Nvidia's revenues in the next couple of years. It would also be the first time Nintendo and Nvidia have partnered.

We are following up with Nintendo and will update if the company comments.